We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Republic Services, Inc. (RSG - Free Report) reported impressive first-quarter 2023 results, with both earnings and revenues surpassing the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 3 cents from non-recurring items) per share of $1.24 outpaced the Zacks Consensus Estimate by 9.7% and our estimates by 8.8%, also improved 8.8% year over year.
Republic Services' average recycled commodity price per ton sold during the first quarter was $105. This represents an increase from the fourth-quarter 2022 figure of $17 per ton and a decrease of $96 per ton over the prior year.
Republic Services, Inc. Price, Consensus and EPS Surprise
Quarterly revenues of $3.58 billion surpassed the Zacks Consensus Estimate by 4.9% and increased 20.6% year over year. The revenues beat our estimates by 5.8%. Total internal growth plunged 8.6%, while revenues from acquisition surged more than 100%.
Revenues from the Collection segment totaled $2.46 billion, up 12.9% year over year. Revenues (net) in the Transfer and Landfill segments amounted to $173.3 million and $392.6 million, rising 5.1% and 12.3%, respectively, year over year. The Environmental Solutions segment’s revenues (net) of $408.3 million surged more than 100% year over year.
The Other segment’s revenues of $148.5 million declined 17.2% year over year.
Operating Results
Adjusted EBITDA margin of 29% declined 140 basis points from the prior-year quarter’s levels.
Operating income was $644.1 million, up 14.9% from the year-ago quarter’s levels. The operating income margin declined to 18% from the year-ago quarter’s figure of 18.9%.
Total selling, general and administrative expenses were $379.2 million, up 23.2% from the year-ago quarter’s figure.
Balance Sheet and Cash Flow
Republic Services exited first-quarter 2023 with cash and cash equivalents of $132.2 million compared with $143.4 million at the end of the prior quarter.
Long-term debt (net of current maturities) was $11.5 billion compared with $11.3 billion at the end of the prior quarter.
RSG generated $687.7 million of cash from operating activities in the reported quarter. The adjusted free cash flow was $495.5 million. Capital expenditures in the reported quarter were $378.6 million.
In the quarter that ended Mar 31,2023, RSG returned $156.4 million of total cash to its shareholders ($156.4 million of dividends paid).
2023 Guidance
The company reaffirmed its 2023 outlook. RSG expects revenues in the range of $14.65-$14.8 billion. The Zacks Consensus Estimate is pegged below the midpoint ($14.73) of the guided range at $14.71 billion.
Adjusted diluted earnings per share are anticipated to be between $5.15 and $5.23. The Zacks Consensus Estimate is below the midpoint ($5.19) of the guided range at $5.18 per share.
Adjusted EBITDA is projected to be in the range of $4.275-$4.325 billion.
Management expects adjusted free cash flow to be between $1.86 billion and $1.90 billion.
RSG expects to invest at least $500 million in acquisitions in 2023.
Equifax (EFX - Free Report) reported better-than-expected first-quarter 2023 results. Adjusted earnings (excluding 52 cents from non-recurring items) came in at $1.43, beating the Zacks Consensus Estimate by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.
Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results. OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. Earnings per share increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
Fiserv reported impressive first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings per share (excluding 69 cents from non-recurring items) of $1.58 increased 12.9% year over year, beating the consensus mark by 1.3%. Earnings beat our estimate by 2.6%. Adjusted revenues of $4.28 billion beat the Zacks Consensus Estimate by 3% and increased 9.5% year over year. Revenues surpassed our estimates by 4.65%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Republic Services' (RSG) Q1 Earnings Surpass Estimates
Republic Services, Inc. (RSG - Free Report) reported impressive first-quarter 2023 results, with both earnings and revenues surpassing the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 3 cents from non-recurring items) per share of $1.24 outpaced the Zacks Consensus Estimate by 9.7% and our estimates by 8.8%, also improved 8.8% year over year.
Republic Services' average recycled commodity price per ton sold during the first quarter was $105. This represents an increase from the fourth-quarter 2022 figure of $17 per ton and a decrease of $96 per ton over the prior year.
Republic Services, Inc. Price, Consensus and EPS Surprise
Republic Services, Inc. price-consensus-eps-surprise-chart | Republic Services, Inc. Quote
Revenues
Quarterly revenues of $3.58 billion surpassed the Zacks Consensus Estimate by 4.9% and increased 20.6% year over year. The revenues beat our estimates by 5.8%. Total internal growth plunged 8.6%, while revenues from acquisition surged more than 100%.
Revenues from the Collection segment totaled $2.46 billion, up 12.9% year over year. Revenues (net) in the Transfer and Landfill segments amounted to $173.3 million and $392.6 million, rising 5.1% and 12.3%, respectively, year over year. The Environmental Solutions segment’s revenues (net) of $408.3 million surged more than 100% year over year.
The Other segment’s revenues of $148.5 million declined 17.2% year over year.
Operating Results
Adjusted EBITDA margin of 29% declined 140 basis points from the prior-year quarter’s levels.
Operating income was $644.1 million, up 14.9% from the year-ago quarter’s levels. The operating income margin declined to 18% from the year-ago quarter’s figure of 18.9%.
Total selling, general and administrative expenses were $379.2 million, up 23.2% from the year-ago quarter’s figure.
Balance Sheet and Cash Flow
Republic Services exited first-quarter 2023 with cash and cash equivalents of $132.2 million compared with $143.4 million at the end of the prior quarter.
Long-term debt (net of current maturities) was $11.5 billion compared with $11.3 billion at the end of the prior quarter.
RSG generated $687.7 million of cash from operating activities in the reported quarter. The adjusted free cash flow was $495.5 million. Capital expenditures in the reported quarter were $378.6 million.
In the quarter that ended Mar 31,2023, RSG returned $156.4 million of total cash to its shareholders ($156.4 million of dividends paid).
2023 Guidance
The company reaffirmed its 2023 outlook. RSG expects revenues in the range of $14.65-$14.8 billion. The Zacks Consensus Estimate is pegged below the midpoint ($14.73) of the guided range at $14.71 billion.
Adjusted diluted earnings per share are anticipated to be between $5.15 and $5.23. The Zacks Consensus Estimate is below the midpoint ($5.19) of the guided range at $5.18 per share.
Adjusted EBITDA is projected to be in the range of $4.275-$4.325 billion.
Management expects adjusted free cash flow to be between $1.86 billion and $1.90 billion.
RSG expects to invest at least $500 million in acquisitions in 2023.
Currently, Republic Services carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Equifax (EFX - Free Report) reported better-than-expected first-quarter 2023 results. Adjusted earnings (excluding 52 cents from non-recurring items) came in at $1.43, beating the Zacks Consensus Estimate by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.
Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results. OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. Earnings per share increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
Fiserv reported impressive first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings per share (excluding 69 cents from non-recurring items) of $1.58 increased 12.9% year over year, beating the consensus mark by 1.3%. Earnings beat our estimate by 2.6%. Adjusted revenues of $4.28 billion beat the Zacks Consensus Estimate by 3% and increased 9.5% year over year. Revenues surpassed our estimates by 4.65%.